Bank of Ireland branch in Letterkenny goes on market

The trickle of bank investment properties coming on the market continues with the planned sale of a property in Letterkenny, Co Donegal. Several more branches are due to hit the market in the coming weeks.

DTZ Sherry FitzGerald and Sherry FitzGerald Rainey are seeking in excess of €2,690,000 million for the Bank of Ireland branch in Letterkenny which is producing €190,000 a year under a 25-year lease that has 21.8 years to run.

A strong selling point is the five-yearly rental uplifts for the duration of the lease, with the next increase in September 2016 set to increase the annual income to €218,500.

The investment will show a net initial yield of 6.75 per cent, rising in 2016 to 7.76 per cent when the standard purchasing costs are taken into account. Interested parties will be well aware that they can avoid capital gains tax if they complete the purchase before the end of the year and hold the investment for seven years.

The two-storey bank building extends to more than 836sq m (9,003sq ft) and underwent a complete refurbishment in 2011 when an extension to the rear was also completed. The layout includes a banking hall at ground floor level with offices and staff facilities on the first floor. There are six car-parking spaces to the rear.